Working With First-Time Home Buyers
Is this the year of the first-time home buyer? In the Bay Area housing market, like some other parts of the country, there are signs of recovery. But interest rates remain at historic lows, and they're expected to remain low for the next year. The Federal Reserve's intent is to keep interest rates low until the middle of 2015— and that's good news for potential buyers. With the recent trend of rents going up, it could be a great time for a first-time home buyer to take the plunge. And that search for a starter home will be easier with the help of a real estate agent who is attuned to the special needs of the “newbie” buyer.
Pitch On Your Website
You've decided to target new buyers but where do you find them? Increasingly, people looking for their first home are beginning their search online. This is your chance to stand out from the competition: your website's home page should feature a welcoming message for those folks who are just starting to think about house hunting. Attract the novice buyer with helpful resources on buying your first home. Videos are a great way to provide new information— consider shooting a short video with helpful tips for the first-time house hunter and post it on your website.
First time home buyers may find the real estate jargon confusing. Comparative market analysis, loan-to-value ratio, good-faith estimate— these are terms that are very familiar to any real estate agent but not to a novice buyer. So why not create a feature on your site that clarifies this terminology? You could include a convenient glossary of real estate terms that a potential client can print and keep for reference.
Getting to Know You
Let's say that a potential first-time home buyer has been tempted by your website to set up an appointment, and you are meeting them in your office tomorrow. One question that may come up during the interview is: in this day of online listings, does the Johnson family actually need a real estate agent to help them buy a house? The initial meeting is the perfect time to explain why having a real estate agent can help buyers with their search for the right house. Discuss how you can not only share your wealth of knowledge about certain neighborhoods but you can also negotiate for them in areas such as price, date of possession, and the details of the purchase agreement. And you will be there to steer them through the closing process, and can even recommend a moving service for the big move-in day.
Of course, the getting-to-know-you process works both ways. The more you know about the potential buyer, the easier it will be for you to help to find their dream home. Having them fill out a home buyer questionnaire is a great way to get a clear picture of what your new clients are looking for. Are commute times and access to public transit important? Would they be tempted by a fixer-upper? Are they interested in neighborhoods with sporting and cultural facilities? Answers to questions like these will help you in the search for the right house for your new clients.
Dollars and Sense
During the course of the buyer survey, it may become obvious to you that financing is an area in which your potential clients are in need of further information. As a real estate agent, you are very familiar with the details of interest rates, credit scores, qualifying for a loan, down payments, and the entire process of home purchasing, but the novice buyer may find the subject of financing complicated and rather intimidating. Take the time to explain the process of home financing and give the buyers tips on all the financing options that may be available to them. A printed brochure with tips on home financing is something your clients will appreciate.
When you're doing the initial interview with first-time home buyers, it's a great time to make sure they're aware of the extra costs that can be associated with purchasing a house. Explain why it's a good idea to have a house professionally inspected before buying, and what your clients should expect to pay for that service. How much should they budget for closing costs and title insurance? If your clients have always been renters, they should be aware that as homeowners they will be responsible for all maintenance costs and upkeep. They will also need to budget for utilities, property taxes and homeowners' insurance. The National Association of Home Builders estimated recently that the average cost of operating a home is approximately $6,900 a year. The operating costs per square foot decline the newer the building is. Regional costs may vary, but it's a good ballpark figure for new home buyers to use when they're deciding if 2013 is the year they can afford to buy a house.
Now that you and your first-time buyers have connected and established a great relationship, make 2013 the year you find perfect starter homes for the Johnson family and many more clients!
Pitch On Your Website
You've decided to target new buyers but where do you find them? Increasingly, people looking for their first home are beginning their search online. This is your chance to stand out from the competition: your website's home page should feature a welcoming message for those folks who are just starting to think about house hunting. Attract the novice buyer with helpful resources on buying your first home. Videos are a great way to provide new information— consider shooting a short video with helpful tips for the first-time house hunter and post it on your website.
First time home buyers may find the real estate jargon confusing. Comparative market analysis, loan-to-value ratio, good-faith estimate— these are terms that are very familiar to any real estate agent but not to a novice buyer. So why not create a feature on your site that clarifies this terminology? You could include a convenient glossary of real estate terms that a potential client can print and keep for reference.
Getting to Know You
Let's say that a potential first-time home buyer has been tempted by your website to set up an appointment, and you are meeting them in your office tomorrow. One question that may come up during the interview is: in this day of online listings, does the Johnson family actually need a real estate agent to help them buy a house? The initial meeting is the perfect time to explain why having a real estate agent can help buyers with their search for the right house. Discuss how you can not only share your wealth of knowledge about certain neighborhoods but you can also negotiate for them in areas such as price, date of possession, and the details of the purchase agreement. And you will be there to steer them through the closing process, and can even recommend a moving service for the big move-in day.
Of course, the getting-to-know-you process works both ways. The more you know about the potential buyer, the easier it will be for you to help to find their dream home. Having them fill out a home buyer questionnaire is a great way to get a clear picture of what your new clients are looking for. Are commute times and access to public transit important? Would they be tempted by a fixer-upper? Are they interested in neighborhoods with sporting and cultural facilities? Answers to questions like these will help you in the search for the right house for your new clients.
Dollars and Sense
During the course of the buyer survey, it may become obvious to you that financing is an area in which your potential clients are in need of further information. As a real estate agent, you are very familiar with the details of interest rates, credit scores, qualifying for a loan, down payments, and the entire process of home purchasing, but the novice buyer may find the subject of financing complicated and rather intimidating. Take the time to explain the process of home financing and give the buyers tips on all the financing options that may be available to them. A printed brochure with tips on home financing is something your clients will appreciate.
When you're doing the initial interview with first-time home buyers, it's a great time to make sure they're aware of the extra costs that can be associated with purchasing a house. Explain why it's a good idea to have a house professionally inspected before buying, and what your clients should expect to pay for that service. How much should they budget for closing costs and title insurance? If your clients have always been renters, they should be aware that as homeowners they will be responsible for all maintenance costs and upkeep. They will also need to budget for utilities, property taxes and homeowners' insurance. The National Association of Home Builders estimated recently that the average cost of operating a home is approximately $6,900 a year. The operating costs per square foot decline the newer the building is. Regional costs may vary, but it's a good ballpark figure for new home buyers to use when they're deciding if 2013 is the year they can afford to buy a house.
Now that you and your first-time buyers have connected and established a great relationship, make 2013 the year you find perfect starter homes for the Johnson family and many more clients!
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